The dollar marked a 2-week high against the yen on Tuesday, but traded in the middle of its range of the last 4 months or so.

The dollar marked a 2-week high against the yen on Tuesday, but traded in the middle of its range of the last 4 months or so. The dollar bounced strongly off the 96.50 area and it will be interesting how high this bounce can lead to.

The RSI is at 51, which represents a neutral level. Dollar/ yen is also trading close to its 50-day moving average.

Important levels to look forward to are on the downside 96.55 – 95.80, which is the first area of support, followed by 93.86, which is the 6-month low. A decisive break of these levels would mark a reversal of the yen’s decline.

On the upside, some important levels are the 3-month high just above 100 yen at 100.60, followed by the year’s high of 103.71.